Investors have the right to freely conduct investment activities in Vietnam, paying attention to relevant legal conditions and procedures. Investors, depending on specific cases, can enjoy investment incentives if they belong to the specified target group. So, how many forms of investment incentives are there?
1. Regulations on investors
Investors are defined as organizations and individuals carrying out the following business investment activities:
– Domestic investor means an individual holding Vietnamese nationality or a business organization whose members or shareholders are not foreign investors (including enterprises, cooperatives, cooperative unions and other organizations that carry out business investment activities).
– Foreign investor means an individual holding a foreign nationality or an organization established under foreign laws and carrying our business investment activities in Vietnam.
– Foreign-invested business organization means an organization whose members or shareholders are foreign investors.
2. Form of investment incentives
Forms of investment incentives in Vietnam according to current Investment laws include:
a. Corporate income tax incentives
– Application of a lower rate of corporate income tax for a certain period of time or throughout the investment project execution;
– Exemption from and reduction of tax and other incentives prescribed by the Law on Corporate Income Tax.
b. Exemption from import tax
Exemption from import tax on goods imported to form fixed assets; raw materials, supplies and components for manufacturing purposes in accordance with regulations of law on import and export tax;
c. Land levy and land rents
Exemption from and reduction of land levy and land rents;
d. Method for calculating taxable income
Accelerated depreciation, increasing the deductible expenses upon calculation of taxable income.
3. Procedures for applying investment incentives
Investment incentives apply to each specific subject determined based on the written approval for investment guidelines (if any), the investment registration certificate (if any) and other relevant regulations of law.
Accordingly, investors determine their own investment incentives and carry out procedures to enjoy investment incentives at tax authorities, financial agencies, customs authorities and other competent agencies corresponding to each type of investment incentives.
- Investment Law 2020.
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